Well, there you have it: “any more or less likely to be a crook than any politician or bureaucrat.” I agree. But I believe there is definitely a basis for skepticism about their reliability. By the way I do bank at JPM. By default, after they took over Washington Mutual. I seem to have a knack for picking winners. I definitely don’t feel good about being derogatory about banks. I feel very bad, in fact, that I can’t feel completely positive about them.

I’ll have a great weekend, you do the same, my friend.

MoJo… are you referring to the Glass-Steagall Act that Clinton abolished? That may be to what you refer.

Also, in this case of JPM, the money is clearly NOT client money. It’s house money. Their private money. So why care? If you care so much, why are you NOT screaming and yelling about Jon Corzine stealing $2B in CLIENT MONEY to cover his bad bets? So far, all the leftists at The Memo and in the State controlled media of ABC, CBS, NBC, CNN, HLN, MSLSD, NY Slimes, Wash ComPost, etc. have been loudly proclaiming this issue like……… crickets …………. crickets …………. crickets………..

Wonder why? Hmmmmm????…. let me see…….. could it be that Corzine is big donor and cash bundler for Obozo? Hmmmmmmmm???? Could it be that Obozo actually was going to make him Treasury Secretary? Hmmmmmmmm????

Set that aside and consider the bigger picture……….

In addition…. today, the reason big banks (like Corzine’s MFGlobal) are at considerable risk, especially European Banks, is because those banks hold waaayyyy too much in sovereign debt, that’s right, government debt, that IS NOT getting repaid from bankrupt socialist democracies. Further, much of that sovereign debt is being insured (in banking terms, hedged) and collateralized with derivatives.

We have major financial problems coming and anyone reading this should take heed. The combined national debt of the G10 (the ten largest economies) exceeds $70TRILLION. That’s about 140% of global GDP. The US is by far the largest debtor nation. The debts are held predominantly by the banking system that has been encouraged by the politicians to keep financing their profligate spending on social programs over the decades. As the risk of not being paid begins to grow, these financial institutions try to hedge their bets. Hedging a bet to a financial institution is like buying insurance. This is what is known in common language these days as “derivatives”. There are approximately $700TRILLION in derivatives that are collateralized by that $70TRILLION in sovereign debt.

You see, this is why even a little piss-ant country like Greece with an economy of only $300B is such a worry. You see, the entire global financial system is actually a very large house of cards. Greece is only one of those cards, but like a set of dominoes, once it is tripped, it ripples through the system. Spain and Italy are the next ones to fall. Both of them have very large economies and banks that are far more important to global trade that Greece is. Right now, if you are paying attention to the financial news, and I dont mean the garbage on CNBC, you know that the likelihood of real trouble is greater than the likelihood of smooth resolution.

The only choice the Fed or the European Central Bank have is to create an illusion that everything is OK while in the background bailout after bailout of banks and countries occurs with a crank up of the printing presses. It’s going on right now beneath our noses, and unless you are tuned in, you’re just a sheep going through your daily grind being led to your slaughter.

I haven’t even gotten into the issue of China and how they have been hoarding gold for the past 10+ years. Last month alone they bought 228 tons of gold. They have been waging a currency war on us for some time and our leaders have been letting them get away with it. At some point, since we owe them about $2T, they will get tired of us paying them in increasingly worthless dollars. When that happens, they will announce the convertability of the yuan into some form of backing by gold or a basket of varying precious metals. What do you think happens to the dollar’s status as the world’s reserve currency at that point? It’s GONE! All of the trillions of printed US dollars that currently reside in countries’ national reseves for trade will begin to be returned to us. What do you think happens when all of that currency floods the market? You’re correct if you said massive hyperinflation.

We are at the precipice of a financial calamity. Looking at things objectively, Obozo was not the cause of this, but he certainly has hastened it with his 1930′s mentality of borrow and spend, borrow and spend, as his solution to economic recovery. The problem is that the cure he has prescribed is far worse thant the disease ever could have been. I’m not sure if Romney will be better, frankly, but I do know that Obozo’s ideas have been a massive failure at a time when we can least afford it. Even with Romney, or anyone else short of the courage and leadership of a George Washington or Abe Lincoln, I honestly don’t think it will matter much at this point.

That’s my 2 cents, but then again, as you stated, I dont know anything about economics.

Have a nice day!